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Dealers mobilize to protect their margins from automaker subscription services

Six individual auto brands — Lincoln, Cadillac, Porsche, Mercedes, BMW and Volvo — have established or are trialing a vehicle subscription service in the U.S. Three third-party companies — Flexdrive, Clutch and Carma — run brand-agnostic subscription services. And three automakers — Mercedes-Benz, BMW, and General Motors — have also launched short-term rental services. Dealers, afraid of how these trends might affect their margins, are building political and lawmaking campaigns to protect their revenue streams. So far, three states are investigating automaker subscriptions, and Indiana has banned any such service until next year. It's certain that those three states are the first fronts in a long political and legal battle. Powerful dealer franchise laws mandate the existence of dealers and restrict how automakers are allowed to interact with customers to sell a vehicle. On top of that, Bob Reisner, CEO of Nassau Business Funding & Services, said, "Dealers and their associations are among the strongest political operators in many states. They as a group are difficult for state politicians to vote against." In California earlier this year, the state Assembly debated a bill with wide-ranging provisions to protect against what the California New Car Dealers Association called "inappropriate treatment of dealers by manufacturers." One of those provisions stipulated that subscription services need to go through dealers, but that item got stripped out when dealers and manufacturers agreed to discuss the matter further. In Indiana, Gov. Eric Holcomb signed a moratorium on all subscription programs by dealers or manufacturers until May 1, 2019, to give legislators more time to investigate. Dealers in New Jersey have taken their campaign to the state capitol, asking that the cars in subscription programs get a different classification for registration purposes. Automakers run the current subscription services and own the vehicles. Sign-ups and financial transactions happen online or through apps, leaving dealers to do little more than act as fulfillment centers to various degrees, with little legal recourse as to compensation amounts when they're called on to deliver or service a car. That's a bad base to build on for business owners who've sunk millions of dollars into their operations.

Mercedes working on new inline-six engines

Mercedes-Benz will make a return to the inline-six-cylinder engine game, according to a report from the UK's AutoCar. It's not clear what's prompting the phasing out of the current array of V6s.
We'll see the first inline-six from Mercedes in next-generation E-Class, set to debut in 2016. Following that, it'll arrive as part of a mid-cycle refresh for the C-Class in 2017. What's particularly special about the new inline-six is its modular nature, which will allow Mercedes to eventually spinoff three- and four-cylinder options, with the three-pot arriving alongside the new inline-six.
In other news, AutoCar uncovered some details on the next C-Class AMG, which will ditch its excellent 6.2-liter, AMG V8 in favor of a 4.0-liter, twin-turbocharged V8, although we've already told you about that. What we didn't know at the time, though, was that the 4.0-liter would be paired first with a new, seven-speed AMG Speedshift transmission and offer all-wheel drive. AC also reports that a nine-speed Speedshift is in the works.

Mercedes-Benz S500 Plug-in Hybrid ready for 'major role' in urban areas

We finally got a clear look at the Mercedes-Benz S500 Plug-in Hybrid at the Frankfurt Motor Show last fall, but it took until this week to learn what the vision (see what we did there) is that Mercedes-Benz has for the PHEV. Despite it's generous size, Mercedes thinks this is a vehicle that will work well in urban areas. Speaking to members of the media during the Detroit Auto Show, Thomas Weber, Daimler AG management board member and research and development chief for Mercedes-Benz cars, said that the S500 PHEV, "will play a major role in congested areas" and that it will offer "a lot of driving pleasure." Part of that pleasure will come from a 0-62 mile-per-hour time of around 5.5 seconds thanks to a turbocharged, 3.0-liter V6 and an 80-kilowatt electric motor. The PHEV also has a 19-mile EV range, which will put it at the bottom end of the Three-Pointed star plug-in lineup. The upcoming C-Class plug-in, for example, will likely go, "closer to 50 km [31 miles]," Weber said, according to Green Car Reports. The S500 PHEV will go on sale in Europe later this year and will come to the US in early 2015 but there is no timeline, yet, for the C-Class plug-in (and the standard gas-electric hybrid version) or the even-more-future E-Class hybrids. Featured Gallery 2014 Mercedes-Benz S500 Plug-in Hybrid: Frankfurt 2013 View 22 Photos News Source: Green Car ReportsImage Credit: 2014 Jonathon Ramsey / AOL Green Detroit Auto Show Mercedes-Benz Electric Hybrid PHEV s500